Posts Tagged ‘Lending’

 

Barack Obama gets tough with “fat cat bankers”

Barack Obama met with 12 “fat cat bankers,” who he largely blames for the recession. After criticizing them for risky behavior which contributed to the nation’s economic problems, he said,

“And so I urged these institutions here today to go back and take a third and fourth look about how they are operating when it comes to small business and medium-sized business lending,”

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Barack Obama’s idea to weaken banks

Barack Obama will be having a meeting with CEO’s from the banking industry. One of the topics he will address is their need to lend more. Yes, you heard correctly! If you think this is a little odd, you’re not alone”

“The White House’s political people like [senior adviser David] Axelrod tell us to lend more,” said one banking official. “But the regulators are saying the exact opposite. They’re saying, ramp up your capital ratios, and if you see default risk on the horizon, cut back on lending.”

The recession has been serious, and it was was caused by a myriad of problems. Some of those problems were related to banks extending credit to people who shouldn’t have received a loan, and irresponsible borrowers who took on too much debt. Let’s also remember that many of these financial institutions were under-capitalized. Now that things are slowly starting to improve, what does the administration want to do? Lend more! » read more

 
 
 

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